The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new
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Question:
The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $ and it falls into the MACRS year class. Purchase of the computer would require an increase in net operating working capital of $ The computer would increase the firm's beforetax revenues by $ per year but would also increase operating costs by $ per year. The computer is expected to be used for years and then be sold for $ The firm's marginal tax rate is percent, and the project's cost of capital is percent.
What is the operating cash flow in Year Round it to a whole dollar, and do not include the $ sign.
Year
MACRS Percent
Posted Date: